Posted by “LIC” could refer to several things, but the most common meaning is “Life Insurance Corporation of India.”
Life Insurance Corporation of India (LIC) is the largest life insurance company in India, established in 1956. It is a state-owned insurance group and investment company that offers a range of life insurance products such as term insurance, endowment plans, pension plans, and more. The company also offers group insurance policies, as well as insurance for special purposes like children’s education, housing, and health-related expenses.
LIC operates through a network of agents, branch offices, and online portals to offer its services across India. It is known for its trustworthy brand image and customer-friendly policies.
what the benefits of LIC
- Wide range of policies: LIC offers a wide range of life insurance policies to meet the different needs and preferences of individuals. These policies come with varying features and benefits, such as savings, protection, and investment options.
- Tax benefits: The premiums paid towards LIC policies are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Additionally, the maturity proceeds of life insurance policies are exempted from income tax under Section 10(10D).
- Bonus: LIC policies also offer annual bonuses to the policyholders, which can increase the value of the policy over time.
- High claim settlement ratio: LIC has a high claim settlement ratio, which means that it settles a large number of claims filed by its policyholders.
- Trustworthy brand image: LIC is a well-known and trustworthy brand in India, with a strong track record of fulfilling its commitments to policyholders.
- Customized plans: LIC also offers customized insurance plans to cater to the specific needs of policyholders.
- Pension plans: LIC offers a range of pension plans to help individuals plan for their retirement and ensure financial security in their old age.
- Loan facility: Some LIC policies also offer a loan facility, which can be useful in times of financial need.
Overall, LIC provides a comprehensive and reliable life insurance coverage to individuals and families, which helps them secure their future and achieve their financial goals.
pre or cons of LIC
Like any other insurance company, there are some pros and cons to choosing Life Insurance Corporation of India (LIC) as your insurance provider. Here are some of them:
Pros:
- Wide range of policies: LIC offers a wide range of life insurance policies to meet the different needs and preferences of individuals.
- Tax benefits: LIC policies provide tax benefits to the policyholders, which can help in reducing their tax liability.
- Bonus: LIC policies offer annual bonuses to the policyholders, which can increase the value of the policy over time.
- High claim settlement ratio: LIC has a high claim settlement ratio, which means that it settles a large number of claims filed by its policyholders.
- Trustworthy brand image: LIC is a well-known and trustworthy brand in India, with a strong track record of fulfilling its commitments to policyholders.
- Customer service: LIC has a wide network of agents and branch offices, which provides good customer service and support to policyholders.
Cons:
- Cost: Some of the LIC policies can be expensive, which may not be affordable for everyone.
- Limited flexibility: LIC policies have limited flexibility in terms of customization and may not be suitable for those looking for more personalized insurance plans.
- Lengthy process: The process of purchasing LIC policies can be time-consuming and involves a lot of paperwork.
- Investment options: LIC policies may not offer a wide range of investment options, which may not be suitable for those looking for higher returns on their investments.
- Underwriting: LIC policies may have strict underwriting requirements, which may make it difficult for some individuals to qualify for coverage.
- Digital services: LIC’s digital services, such as its website and mobile app, may not be as user-friendly as those offered by other insurance providers.
Overall, while LIC has several advantages such as a wide range of policies, tax benefits, and a trustworthy brand image, it may not be suitable for everyone. It is important to carefully evaluate your insurance needs and compare different insurance providers before making a decision.
how much plan have lic
- Term insurance plans: These plans provide pure life cover for a specific period of time and are suitable for those looking for low-cost insurance coverage.
- Endowment plans: These plans provide both insurance coverage and savings and investment benefits. They offer guaranteed returns and bonuses to policyholders.
- Whole life insurance plans: These plans provide lifelong insurance coverage and are suitable for those looking for long-term protection.
- Money-back plans: These plans provide regular payouts to the policyholders throughout the policy term, which can help in meeting their financial needs.
- ULIPs (Unit-Linked Insurance Plans): These plans provide both insurance coverage and investment benefits. They offer flexibility in investment options and allow policyholders to switch between different investment funds.
- Pension plans: These plans provide regular income to the policyholders after their retirement and are suitable for those looking to secure their financial future.
- Child insurance plans: These plans provide insurance coverage and savings benefits for the child’s future education and other expenses.
- Health insurance plans: These plans provide insurance coverage for medical expenses and hospitalization, including critical illnesses.
LIC also offers customized plans to cater to the specific needs and preferences of policyholders.
what is LIC money back plan
LIC Money Back Plans are a type of endowment plan offered by the Life Insurance Corporation of India (LIC). These plans provide regular payouts or money-back benefits to the policyholder during the policy term.
Under this plan, a certain percentage of the sum assured is paid back to the policyholder at specific intervals during the policy term. The remaining sum assured along with any bonuses accrued is paid to the policyholder at the end of the policy term.
LIC Money Back Plans are suitable for those looking for regular income to meet their financial needs and to secure their future. They offer the following benefits:
- Regular payouts: These plans provide regular payouts or money-back benefits to the policyholder during the policy term, which can help in meeting their financial needs.
- Insurance coverage: These plans also provide insurance coverage to the policyholder, which can help in securing their family’s future in case of an unfortunate event.
- Savings benefits: These plans offer savings benefits in the form of bonuses, which can help in building a corpus for future financial needs.
- Tax benefits: The premiums paid towards these plans are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Additionally, the maturity proceeds are also exempted from income tax under Section 10(10D).
LIC Money Back Plans come with different policy terms and premium payment options to suit the needs and preferences of policyholders. However, it is important to carefully evaluate the features and benefits of the plan before making a decision.
diffrence between LIC and FD
- Purpose: LIC is a life insurance product that provides financial protection to the policyholder and their family in case of an unfortunate event. FD, on the other hand, is a savings and investment product that offers a fixed rate of interest on the deposited amount.
- Returns: LIC offers a combination of insurance coverage and savings benefits. The policyholder pays regular premiums, and in case of an unfortunate event, the sum assured is paid out to the nominee. Additionally, the policy also offers bonuses and other benefits. FD, on the other hand, offers a fixed rate of interest on the deposited amount, which is known upfront.
- Risk: LIC involves a certain amount of risk, as it is an insurance product that provides coverage against an uncertain event. FD, on the other hand, is a relatively low-risk investment product, as the invested amount is guaranteed, and the returns are fixed.
- Liquidity: LIC policies typically have a lock-in period, and premature surrender may result in a penalty or loss of benefits. FDs, on the other hand, offer more liquidity, as the depositor can withdraw the amount before maturity, albeit with a penalty in some cases.
- Tax Benefits: Both LIC and FDs offer tax benefits to the investor. LIC premiums are eligible for tax deductions under Section 80C of the Income Tax Act, and the maturity proceeds are tax-free under Section 10(10D). FD interest income is taxable, and the investor can claim tax deductions under Section 80C for the invested amount.
In summary, while both LIC and FDs offer savings and investment benefits, they serve different purposes and have different risk-return profiles. LIC provides insurance coverage along with savings benefits, while FD offers a fixed rate of return on the deposited amount. It is important to consider your financial goals, risk appetite, and investment horizon before choosing between these options.